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Board asks ACG for rebalance sheet after debating pulling equity exposure to close overweight
Summary
Board members debated whether to trim about 3.5% of equity exposure and asked ACG to prepare a rebalance sheet showing options to fund monthly pension withdrawals and move money into fixed income.
Board members pressed ACG and staff for a concrete rebalance plan to address a roughly 3.5% overweight to equities as of June 30. Member Sharik (speaker 8) asked directly, "Would it be prudent at this point to pull 4 or 5% from equities and pockets short term into cash or, equivalent till that approval is made," and the group agreed ACG should prepare a rebalance sheet showing the mechanics and timing.
Chair said staff and ACG should circulate the proposed rebalance sheet and execution plan so members can review specifics (which managers and vehicles would be sold, notice deadlines for some vehicles, and how withdrawals to pay benefits would be financed). ACG said it would model a rebalance and show the projected impacts and recommended placing any proceeds into fixed income rather than cash for stability.
